This is an initial assessment of the economic fallout from the recent terrorist attack in the United States and its impact to the North American economy.
Document Highlights
The economic fallout from the recent terrorist attack in the United States will be significant, but it will not be sufficient to drive either Canada or the United States into a full-blown recession.
The sectors most adversely affected include transportation (especially air and truck), tourism, general manufacturing and financial services.
Impact on the U.S.
New York City has an annual gross product of about 5 per cent of total national economic output. Real GDP will decline by 0.2 per cent (annualized) in the third quarter representing the first drop in U.S. real GDP since the first quarter of 1993.
Impact on Canada
Although there should be little impact in the third quarter. The final tally of various effects suggests that Canadian real GDP growth will be lowered by roughly 0.4 per cent (at annual rates) in both the third and fourth quarters and by roughly 0.3 per cent in the first quarter of 2002.
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